Will the Bank of England raise interest rates in the next 12 months? Poll reveals that 40% of people are expecting a hike

More people expect an interest rate rise in the next 12 months than at any time for nearly two years, an influential poll showed yesterday.

The GfK NOP survey for the Bank of England found 40 per cent of those asked think rates will rise in the coming year – the highest level since May 2012.

But only 5 per cent expect rates to rise ‘a lot’ in a sign that the central bank’s message – that when it does eventually act any increases will be ‘gradual’ and ‘limited’ – is getting through to the public.

Rates: Only 5 per cent expect rates to rise a lot in a sign that the central bank's message is getting through to the public

The report also showed concerns about the cost of living, with households now expecting inflation over the coming year to be 2.8 per cent – the lowest prediction for four years and down from 3.6 per cent in November.

It follows a sharp fall in the official rate of inflation in recent months from 2.9 per cent last year to a five-year low of 1.9 per cent in January.

The findings will be welcomed at the Bank, where Governor Mark Carney has said he wants to leave rates as low as possible for as long as possible to support the recovery.